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Loan Prepayment Calculator 2026

The EMI stays the same. An extra amount is added every month, interest is charged on the remaining balance, and the loan closes in fewer months. A one-time lump sum is not an input.

Disclaimer: The 10.5% rate is an illustrative default. A prepayment penalty is not subtracted. Amounts are in rupees.
INR
%
years
INR

Total Interest Saved

₹76,922.62
Loan Closes In50 months
Months Saved10 months

Extra payments reduce the principal faster, which means less interest is charged in future months. The earlier you pay extra, the stronger the effect tends to be.

What the prepayment math is showing

Base EMI
₹32,240.85

The regular monthly payment without extra principal.

With Extra Payment
₹37,240.85

EMI plus the extra monthly amount. The EMI itself does not change.

Interest Without Prepayment
₹4,34,451.03

A benchmark for comparing the savings impact.

Financial & Tax Advice Disclaimer

This tool is provided strictly for educational, planning, and illustrative purposes. All figures, estimates, compounding formulas, and tax calculations are based on user input parameters and current mathematical models.

No Performance Guarantee & Liability: Output calculations do not guarantee future returns, exact bank interest payouts, market gains, or legal tax liability. Toolioz and its maintainers accept no legal or financial liability for investment losses, loan commitments, or tax penalties resulting from the use of this calculator.

Always consult a certified financial planner, registered investment advisor, or Chartered Accountant (CA) before taking financial action.

Default prepayment

The extra amount is paid every month from the first month. The EMI is not reduced.

Starting example

  • -₹15,00,000 at 10.5% for 5 years has an EMI of about ₹32,241.
  • -Interest without the extra payment is about ₹4,34,451 over 60 months.

With ₹5,000 extra

  • -Interest falls to about ₹3,57,528. About ₹76,923 of interest is saved.
  • -The loan closes in 50 months, which is 10 months sooner.

Not simulated

  • -A one-time lump sum is not an input.
  • -A penalty is not subtracted from the interest saved.
  • -An investment return is not compared with the interest saved.
  • -Amounts are formatted in rupees.

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Frequently Asked Questions

It keeps the EMI and adds the extra amount every month. The loan closes in fewer months. A version that keeps the tenure and lowers the EMI is not calculated.

No. A penalty is not subtracted. A one-time lump-sum prepayment is not an input.

No. The result is interest saved and months removed on this loan. An investment return is not calculated.

Publisher notes · reviewed 10 September 2026

What prepayment changes in an amortizing loan

A prepayment reduces principal. The lender then either shortens the remaining tenure or lowers the EMI, according to the product rules. This page estimates interest saved under the model documented on the screen.

Why ₹1 extra is not linear

Interest is charged on outstanding principal. Paying ₹1 lakh in year two of a 20-year loan saves more remaining interest than the same ₹1 lakh in year eighteen, because more periods of interest were still ahead. Run both dates if you are deciding when to deploy a bonus.

Some lenders levy a prepayment charge on floating or fixed products. Subtract that fee from "interest saved" before calling the prepayment a win. RBI has restricted foreclosure charges on some floating-rate individual loans; the current circular beats a blog post.

Worked examples

  • EMI unchanged, tenure cut

    After a lump-sum prepayment, keeping EMI constant typically drops n. The remaining-interest figure should fall. If it does not, check that outstanding principal and remaining months were entered as of the prepayment date, not origination.

Limits of this page

  • Does not reprice a floating rate after prepayment.
  • Does not model moratoriums or skipped EMIs.

Sources